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Boosting growth investment to power mobility company transformation Toyota-Denso capital ties revised

Toyota Motor Corporation (Toyota) has today decided to sell a portion of its shareholdings in Denso Corporation (Denso)

Toyota Motor Corporation (Toyota) has today decided to sell a portion of its shareholdings in Denso Corporation (Denso).

Toyota has been restructuring its groupwide business with a “home & away” perspective since 2016. This is part of its transformation into a mobility company, stimulating mutual improvement through greater collaboration with highly specialized group companies. Amid these efforts, the core group companies of Toyota, Denso, Toyota Industries Corporation, and Aisin Corporation have held extensive discussions and have come to an agreement that, to start, Toyota will sell a portion of its shares in Denso. By effectively leveraging funds obtained through the sale, Toyota can boost capital efficiency and achieve further growth for the Group, while maintaining the capital ties that have sustained a strong relationship. Denso will continue to strengthen the Toyota Group’s competitiveness as a leader in software. Toyota plans to use the generated capital to make growth investments focused on electrification, intelligence, and diversification initiatives.

Toyota also intends to carefully review its capital ties with other group companies on an individual basis, examining elements such as human resources, operations, culture, and business relationships while exploring the potential for strengthening competitiveness. The Group will continue working as one to drive Toyota’s transformation into a mobility company.

Overview of Denso stock sale

Number of shares to be sold124,868,100 shares (planned)
Ownership ratio*Before sale24.2%
After sale20.0% (planned)

* Toyota’s shareholdings as a percentage of current total issued shares (2,995,373,516 shares, excludes treasury stock).
SOURCE: Denso

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